Category The Economy
Why isn’t Zillow dead?
Things are very good at Zillow,” Rich Barton, CEO of the online real estate company, was telling me. We’re in the thick of the worst economic crisis of a generation and a depressed real estate market, so this means that Barton is either a very clever CEO or an audacious liar. I was at first inclined to believe the latter, but left the interview convinced of the former. He’s a canny Web entrepreneur.
It hasn’t all been smooth sailing for Zillow. In October, Barton laid off about 25 percent of Zillow’s staff. He said he did it because he “couldn’t forecast” his business and had to assume the worst scenario. However, the trough following the 2008 bust ended up not being as bad as he thought it was going to be for Zillow, and the company is now back up to its October 2008 staffing level of about 130 people.
Zillow is currently growing, but in a different way than it was before. Page views and unique visitors are up. The site had 8.8 million unique visitors in March, which is a 70 percent year-over-year growth. Zillow has the twice the users at this point as Barton’s team originally projected. However, the revenue per unique user is down to a third of what he expected it would be.
Rich Barton builds cheap sites that focus on expensive audiences.
Posted by Tom Polanski in Social Media, The Economy on May 15th, 2009
Why banks (still) aren’t lending
By David Weidner, MarketWatch
Banks need to stop the charade, ignore the political and public pressure and admit they’re not lending.
It’s not because they don’t want to, but because it’s bad business.
Don’t think so? Take this pop quiz. Bank of America (BAC, news, msgs) posted smashing first-quarter profits and its chief executive, Ken Lewis, said the Charlotte, N.C., company is lending as if the good times never ended. So, in the bank’s conference call, which of the following statements did Lewis make?
A. “Credit is bad, and we believe credit is going to get worse before it will eventually stabilize and improve.”
B. “Even our internal economists are a little at odds as to the timing (of the recovery), with some seeing recovery earlier (than year’s-end).”
C. “We believe unemployment won’t peak until next year at somewhere in the high single digits.”
D. All of the above.
E. None of the above.
Posted by Tom Polanski in The Economy on April 23rd, 2009
What is Chapter 11 bankruptcy? Patterns and consequences of clients under protection
By Tom Polanski, EVP, eBrand Media and eBrand Interactive
Unfortunately there are an increasing number of companies seeking Chapter 11 protection. If your client is exhibiting some of the symptoms below, be very, very aware. If you think your client fully fits the paradigm below, in my opinion, try to extricate yourself from the relationship as quickly as possible, and don’t rationalize:
* Your client expanded rapidly in 2006-2007
* Payments are late
* The phone is never answered
* E-mail aren’t replied to
* Voice mail isn’t responded to
* Partial payments made
* Promises that the check will be sent next week
* Increased number of complaints lodged with BBB, on forums, and in social media
* Promises of an upcoming infusion of capital
Some of the above are obvious but its interesting how a few of my peers convinced themselves that all would be well…until their client filed for Chapter 11 protection. I think Jeff Harbaugh does an extraordinary job here in detailing what a Chapter 11 is, and the consequences thereof:
“A Chapter 11 is a “reorganization” bankruptcy. That is, it is filed with the assumption that the filer will use the protection of the court to reorganize its finances so that it can continue as a going concern. That doesn’t always happen, but it’s the intention going in.
There are a number of schedules you have to file with the court when the bankruptcy occurs. These included assets and liabilities, income and costs, a schedule of existing contracts and some others. Typically, the owner of the business becomes the “debtor in possession” and is responsible for the continued management of the business and control of the associated assets. He is in a position of fiduciary responsibility with the same powers and obligations as if a Trustee had been appointed to manage the business. He’s required to file the monthly reports, can hire attorneys, accountants, appraisers or other professionals to help with the case, and file tax returns.
Posted by Tom Polanski in Growing a Business, Marketing, The Economy on March 25th, 2009
Recession F-bombs: Why swearing feels great
By Diane Mapes
It’s hard to escape news about the bombing economy these days. It’s also getting harder to escape another type of explosion — the verbal kind.
“I’ve been dropping the F-bomb every time I look at the Dow or my 401(k) statement,” says April Thomas, a 35-year-old freelance writer from Watkinsville, Ga. “You open the statement and see that number in black and white and the reality hits and you say a few choice words.”
Michele Mehl, a 35-year-old PR executive from Bothell, Wash., says she, too, has noticed a changed in her cussing habits.
“I don’t know if I’m cussing more, but I’m cussing about things I wouldn’t cuss about before,” she says. “Before, I’d cuss at a driver or someone being rude on the highway. Now I’m cussing at my 401(k) statements. Maybe it’s a transition from road rage to market rage.”
“I don’t know if I’m cussing more, but I’m cussing about things I wouldn’t cuss about before,” she says. “Before, I’d cuss at a driver or someone being rude on the highway. Now I’m cussing at my 401(k) statements. Maybe it’s a transition from road rage to market rage.”
According to Los Angeles psychotherapist Nancy Irwin, a foul economy is prompting more outbursts of foul language.
“There are a lot of elements that are out of our control right now and as a result, there’s a lot more frustration, a lot more fear and anxiety,” she says. “When people feel that, many cuss. Swearing is something that gives us an instantaneous release.”
A popular pastime
The economy may be making it worse, but cursing has been increasingly infiltrating public conversation for years, with the rates of vulgar ranting rising right along with our stress levels. Expletives are so commonplace, there’s almost no cuss-free zone anymore. President Barack Obama’s chief of state, Rahm Emanuel, is notorious for his foul-mouthed tirades. Recent outbursts by celebrities and public figures such as Christian Bale, Rod Blagojevich and Joe Scarborough are just a few other recent examples.
Posted by Tom Polanski in The Economy on March 17th, 2009